When a Price Ceiling Prevents a Higher Market Price from Rationing

question 80

Multiple Choice

When a price ceiling prevents a higher market price from rationing a good,

• A) a surplus of the good will develop.
• B) scarcity of the good will be eliminated.
• C) non-price factors will play a more important role in the rationing process.
• D) the future supply of the good will expand rapidly.

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Definitions:

Albert Ellis

A psychologist known for developing Rational Emotive Behavior Therapy (REBT), a form of cognitive-behavioral therapy focusing on changing irrational beliefs.

Aaron Beck

A psychiatrist known as the father of cognitive therapy, which focuses on changing negative thoughts and beliefs.

Placebo Effect

The apparent success of a medication or treatment due to the patient’s expectations or hopes rather than to the drug or treatment itself.

Novelty Bias

The tendency of individuals to prefer novel objects or experiences over familiar ones.